Source: Xiao Sa Lawyer
Recently, benefiting from positive regulatory signals, major companies have announced plans to layout the "stablecoin" track. Overnight, this concept, once closely tied to cryptocurrency and often associated with money laundering and cross-border cybercrime, has rapidly become the new "hot spot" in the crypto industry and even traditional financial sector, attracting widespread attention.
Interestingly, on June 22, 2025, under the joint promotion of the People's Bank of China and the Hong Kong Monetary Authority, the Cross-border Payment通 was officially launched. The institutional barriers between Hong Kong and mainland China collapsed, and the reform of instant small-amount transfers allowed people to truly experience the benefits and convenience. Since the Cross-border Payment通 is so convenient, do we still need stablecoins?
Today, the Sass team will discuss in detail with partners the similarities and differences between "stablecoins" and traditional financial payment tools, and whether they are "competitors".
I. Clarification of Two Concepts
First, what is a stablecoin? In the most straightforward language, a stablecoin is a cryptocurrency issued by a specific organization or individual, with a legal currency of a country as its underlying asset (value basis). Its technology is not much different from cryptocurrencies like BTC, ETH, but excels in having a price that is open, transparent, and stable without fluctuations, serving as a "general equivalent" in the crypto world as a payment tool or value measurement tool. Therefore, partners can actually view stablecoins as a special non-legal "currency".
Secondly, what is the Cross-border Payment通? Similarly explained in the most straightforward language, the Cross-border Payment通 refers to the "combination" of the Mainland Online Payment Inter-Bank Clearing System (IBPS) and Hong Kong's Faster Payment System (FPS). By interconnecting, they can solve cross-regional fund payment issues at the lowest cost. For example, partners can now directly make small-amount transfers without converting RMB to HKD by using the Cross-border Payment通. Remittances that previously took half a day can now be processed almost instantly, significantly reducing transaction and payment costs.
Currently, according to the Hong Kong Securities and Futures Commission, stablecoins are still in the testing phase, and no issuing entity has successfully emerged from the sandbox to the world. In other words, compliant, regulated stablecoins are still in the early stages of development. In contrast, the Cross-border Payment通 has already brought real convenience to the public, and many partners can use it in the near future.
II. Stablecoins vs Cross-border Payment通, Are They "Competitors"?
This is one of the most frequently asked questions by partners to the Sass team recently. Although both are payment methods and tools at the practical level, they have fundamentally different natures and will have different development and application scenarios in the future.
From the essential attributes, as mentioned earlier, stablecoins are actually a "general equivalent" and a special non-legal "currency"; while the Cross-border Payment通 is a convenient cross-regional (mainland China and Hong Kong) payment system developed based on the existing legal currency system. Therefore, to put it simply, they are not "competitors", but there is indeed some overlap in application scenarios.
Currently, the application scenarios of the Cross-border Payment通 are mainly as follows:
Domestic residents can transfer funds to Hong Kong bank accounts, choosing to remit in RMB and receive in RMB or HKD, commonly known as "Southbound Convenient Remittance Business";
"Northbound Convenient Remittance Business" for Hong Kong residents transferring to mainland bank accounts, with options to initiate in HKD or RMB and receive in RMB;
Individuals and legal entities or institutions can choose bilateral local currency or bilateral RMB remittance, known as "Bi-directional Cross-border RMB Payment Business", such as when Old Wang needs to pay tuition for his son studying at the University of Hong Kong.
The Sass team specially reminds that currently, remittances have amount limits and can only handle small transfers. For remittances from Hong Kong to mainland China, each person can transfer up to 10,000 HKD per day at each bank, and up to 200,000 HKD per year at each bank; from mainland to Hong Kong, it is calculated based on the current individual annual foreign exchange purchase convenience quota of 50,000 USD (incorporated into the foreign exchange control quota).
As for stablecoins, the three in the Hong Kong regulatory sandbox have not revealed much information, and each has different application scenarios. For example, the collaboration between Animoca Brands, Standard Chartered Bank, and Hong Kong Telecom, which has entered the late stage of sandbox testing, is mainly issuing a stablecoin pegged to the Hong Kong dollar.
III. Latest News and Policy Judgments on Hong Kong Stablecoin License Applications
Since the Hong Kong Special Administrative Region's "Stablecoin Ordinance" was enacted and will take effect on August 1, the Sass team has received numerous consultations about license applications. Actually, partners need not panic. Although the Hong Kong Monetary Authority will start accepting license applications after August 1, this license is not first-come, first-served, but will be given to the "reliable".
First, the number of licenses to be granted is extremely limited, possibly only single digits. The Monetary Authority has already provided a clear regulatory approach and positioning: stablecoins are not investment or speculative tools, but one of the payment tools using blockchain technology (positioned as financial infrastructure), and do not have inherent appreciation potential. In other words, the key to obtaining a license is whether the applicant has the ability and intention to invest long-term in infrastructure construction and can provide sufficiently reliable application scenarios to impress the Monetary Authority.
Secondly, the three entities already in the sandbox are undoubtedly ahead, but this does not mean that entering the "sandbox" is a prerequisite for obtaining a license, nor does it mean that institutions already in the "sandbox" will necessarily obtain a license.
In summary, the opportunity given by the times may be this one, and the Sass team does not recommend rushing without adequate preparation. The issuance of stablecoin licenses will inevitably go through a long-term observation cycle, and being late is not impossible as long as one is sufficiently "reliable".
IV. In Conclusion
Many partners are asking what specific conditions need to be met for stablecoin license applications and what specific processes are involved. Actually, the Monetary Authority has not yet provided a clear guide. According to the Sass team's understanding, the guiding document is still in the consultation cycle, and partners are advised to pay close attention.
So, are there any reference standards for preparation at this stage? Of course. The Hong Kong regulatory authorities have clearly stated that the reference for the Hong Kong stablecoin regulatory framework comes from the stablecoin section of the "Global Crypto Asset Activity Regulatory Framework" published by the Financial Stability Board (FSB) under the G20 in 2023. Therefore, if partners want to prepare in advance, it is recommended to refer to this standard to advance specific compliance work.
